New upper limit for Deposit Insurance Scheme and updates on Policy Owners’ Protection Fund Scheme

With effect from 1 April 2019, the insured amount of the Depos­it Insur­ance (DI) Scheme will be increased from $50,000 to $75,000 if any of the DI Scheme mem­bers such as a bank or fin­an­cial insti­tu­tion fails. This scheme cov­ers indi­vidu­als and oth­er non-bank depos­it­ors such as sole pro­pri­et­or­ships, part­ner­ships, com­pan­ies and unin­cor­por­ated entit­ies like asso­ci­ations and soci­et­ies.

The Singa­pore dol­lar denom­in­ated depos­its include depos­its held in a sav­ings account; fixed depos­it account; cur­rent account and any mon­ies placed under the CPF Invest­ment Scheme, CPF Retire­ment Sum Scheme and Sup­ple­ment­ary Retire­ment Scheme and Mura­baha, as pre­scribed by the Author­ity.

In the event a DI Scheme mem­ber fails, moneys and depos­its under the CPF Invest­ment Scheme (CPFIS) and CPF Retire­ment Sum Scheme (CPFRS) are aggreg­ated and sep­ar­ately insured up to S$75,000. All oth­er insured depos­its placed with that mem­ber are aggreg­ated and insured up to S$75,000. For sole pro­pri­et­or, your per­son­al eli­gible accounts will be aggreg­ated with the eli­gible accounts of your sole proprietorship(s). Trust and cli­ent accounts held by non-bank depos­it­ors are insured up to S$75,000 per account, without aggreg­a­tion.

For depos­its in joint accounts, each joint account holder’s share of the joint account is com­bined with oth­er insured depos­its held in his own name. Each joint account hold­er is assumed to have an equal share in the joint account, unless the DI Scheme mem­ber has records that show oth­er­wise.

The Policy Own­ers’ Pro­tec­tion Fund Scheme (PPF) Scheme pro­tects policy own­ers for all life insur­ance policies and cer­tain gen­er­al insur­ance policies in the event of fail­ure of a life or gen­er­al insurer. Such gen­er­al insur­ance policies include acci­dent and health policies, insur­ance that are required by law, and Singa­pore policies of spe­cified per­son­al lines such as per­son­al motor and per­son­al prop­erty (struc­ture and con­tents) insur­ance. Life insur­ance policies includes individual/group term life policies, individual/group whole life policies, individual/group endow­ment policies and indi­vidu­al annu­it­ies

The caps applic­able on the guar­an­teed bene­fits of the dif­fer­ent types of policies covered are as fol­lows:

  • Indi­vidu­al life and vol­un­tary group life policies (with the excep­tion of annu­it­ies): Cap of S$500,000 for the aggreg­ated guar­an­teed sum assured and S$100,000 for aggreg­ated guar­an­teed sur­render value per life assured per insurer.
  • Non-vol­un­tary group whole life or endow­ment policies: Cap of S$100,000 for sum assured and S$50,000 for sur­render value per policy.
  • Non-vol­un­tary group term life policies: Cap of S$100,000 for sum assured per policy.
  • Non-vol­un­tary group whole life or endow­ment policies: Cap of S$100,000 for sum assured and S$50,000 for sur­render value per policy.
  • Non-vol­un­tary group annu­it­ies: Cap of S$100,000 for com­muted value of guar­an­teed bene­fits per policy.

Under Gen­er­al Insur­ance. for a com­puls­ory insur­ance policy under the Motor Vehicles (Third Party Risks and Com­pens­a­tion) Act and Work Injury Com­pens­a­tion Act, the full amount of any liab­il­ity of the failed PPF Scheme mem­ber as provided for under the rel­ev­ant legis­la­tion is pay­able, except it is lim­ited to  S$50,000 for own prop­erty dam­age motor claims under per­son­al motor insur­ance policies. It is lim­ited to S$300,000 for prop­erty dam­age claims, under per­son­al prop­erty (struc­ture and con­tents) insur­ance policies.

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